Saudi Armaco to build crude oil refinery in India

By Shuriah Niazi

NEW DELHI, India (AA) - Saudi Aramco, the world’s largest producer of crude oil, has decided to buy a 50-percent stake in a $44-billion Indian oil refinery, officials said Wednesday.

A memorandum of understanding was signed between three state-run Oil Marketing Companies (OMCs) of India and Saudi Aramco during the International Energy Forum in New Delhi.

The Indian Consortium comprising Indian Oil Corp (IOCL), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum (HPCL), and Saudi Aramco will jointly develop and build a refinery and petrochemicals complex, Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL) in western Maharashtra state, according to statement from the Indian Press Information Bureau.

Saudi Aramco may also seek to include a strategic partner to co-invest in the project.

The refinery will be capable of processing 1.2 million barrels of crude oil per day. It will produce a range of refined petroleum products, including petrol and diesel. The refinery will also provide feedstock capable of producing approximately 18 million tons per annum of petrochemical products.

Dharmendra Pradhan, Indian minister of petroleum and natural gas, said they may seek an additional partner on a "50:50 basis".

Amin Nasser, Saudi Armaco president, said: “The signing of MoU marks a significant development in India’s oil an gas sector.”